Chapter 1 - INTRODUCTION & TRADE FACILITATION - Foreign Trade Procedure 2015-2020 (From 1-4-2015 to 4-12-17)

CHAPTER 1 INTRODUCTION TRADE FACILITATION 1.01 Notification of Procedure In pursuance of the provisions of paragraph 1.03 of Foreign Trade Policy (FTP), the Director General of Foreign Trade (DGFT) hereby notifies the procedure to be followed by an exporter or importer or by the licensing/Regional Authority or by any other authority for purpose of implementing the provisions of Foreign Trade (Development Regulation) Act, the Rules/orders made thereunder and the provisions of Foreign Trade Policy. The said procedure is contained in following compilations: (a) Hand Book of Procedures (b) Appendices Aayat Niryat Forms and (c) Standard Input Output Norms (SION) These compilations, as amended from time to time, shall come into force from the date of their notification and shall remain in force until 31st March, 2020. 1.02 Objective The objective is to implement provisions of FT (D R) Act, Rules and Orders made thereunder and provisions of FTP (2015-20) by laying down simple, transparent and EDI compatible procedures which are user friendly and are easy to comply with and administer for efficient management of foreign trade. 1.03 Definition For the purpose of this Handbook, definitions and glossary contained in FT (D R) Act, Rules and orders made thereunder and in the FTP (2015-20) shall apply. 1.04 e-governance of Foreign Trade (a) DGFT delivers most of its services on a transparent and efficient EDI platform using tools like Online filing of Applications, Message Exchange with Community Partners, Digital Signatures and Electronic payment of application fee. Use of EDI at DGFT has enabled faster processing, speedier communication by e-mail and on-line availability of application processing status. The endeavour is to achieve higher level of information sharing through SMS. (b) Export Import related information including Acts, Rules, Policy Procedures thereof including online DGFT portal can be accessed at http://dgft.gov.in/. (c) All the DGFT Regional Authorities are EDI enabled and connected with the DGFT Central Server to provide online connectivity to EXIM community in a 24x7 environment. (d) DGFT keeps expanding the scope and domain of EDI on a continuous basis. The endeavour is to achieve higher level of integration with community partners. 2 [ 1.05 Procedure (a) An exporter shall file his application online on DGFT website at http://dgft.gov.in/. Application will then be processed in accordance with prevalent rules and regulations. The processing of applications will be made online. DGFT shall issue deficiency letters, if any, in online mode or through use of e-mail. No communication shall be issued by DGFT in manual mode. (b) As a measure of transitional arrangement, exporters may file application manually, till EDI online module is ready or upto 30th September, 2015 whichever is earlier, for the following category of applications:- (i) Application for Status Holder Certificate in ANF 3C under paragraph 3.19 (ii) Application for bond waiver in ANF 4F under paragraph 4.47 (iii) Application for Nominated Agency Certificate in ANF 4-I under paragraph 4.94.] 1.06 Use of Digital Signature (a) DGFT allows online filing of applications with Class-II digital signature with IEC number embedded in it. A list of DGFT approved digital signature issuing authorities is given as under: (i) (n) Code Solutions CA (ii) e-Mudhra (iii) Safescrypt (Siffy Communication Limited) (b) For purposes other than submission of the application, such as an enquiry or uploading/processing of eBRC data, class II or above digital signature certificate issued by any approved entity of Controller of Certifying Authority of India is accepted. 1 [ 1.07. Separate applications from EDI and Non EDI ports ] Separate applications shall be filed to DGFT for exports from EDI ports and Non EDI ports. 1.08 Application for exports from Non EDI ports An exporter would be able to file his application on DGFT website at http://dgft.gov.in/. Applicant will then submit to concerned RA the hard copy of application along with requisite documents. Authorisation/Scrip shall be issued on the basis of hard copies of documents as prescribed in HBP after due scrutiny. 1.09 Application for exports from EDI ports Applications relating to exports from EDI ports will be filed online as per relevant provisions. Physical or Hard copy of the following documents shall not be required to be submitted: (i) Applications to DGFT (ii) EDI shipping bills (iii) Electronic Bank Realisation Certificate (eBRC) (iv) RCMC 1.10 No manual feeding allowed for EDI shipments For EDI shipping Bills, no manual feeding of Shipping bill details will be allowed to the applicants in the online software and benefits will accordingly be granted by RAs without the need for cross verifying EDI Shipping Bill details. 1.11 Dispensing with hard copy of documents Hard copy of documents already submitted online in exporter s profile shall not be called for. 1.12 Processing of Non EDI Shipping bills at RA In case of the Non EDI shipping bills or the shipping bills not received through the Message Exchange from Customs, concerned RA shall verify the details entered by the exporter from the original shipping bills before grant of benefits. 1.13 Instructions for filing of applications Detailed step by step instructions for online filing of an application are available at the relevant HELP files at DGFT website and at scheme specific ANF of the HBP 1.14 EDI Procedure for claiming benefits in respect of Third Party exports For claiming benefits under EDI system in respect of Third Party exports the process will be initiated by the First party who will link shipping bills and BRCs to repository. If the First Party chooses not to claim benefit for a particular shipping bill item/s, it may authorize Third Party to claim benefit for such shipping bill item/s. After such authorization by First party, Third Party will be able to utilize the shipping bill item/s in its application . 1.15 Conversion of Currencies in e-BRCs (a) Currencies, where Exchange rates are notified by CBEC: The foreign exchange realized (as mentioned by bank in the e BRC) is converted to Indian Rupee (INR) using the monthly exchange rates published by CBEC as on Let Export Order (LEO). (b) Currencies, where Exchange rates are not notified by CBEC: In such cases, total realized value in INR (as mentioned by bank in the e BRC), will be converted into US$ by using the US$ /INR exchange rate prevailing on the date of realization as published by CBEC. 1.16 Guidelines for Processing of claims where an exporter gets payment through Insurance Agencies (and not through banks) towards realization of export proceeds (a) An applicant realizing export proceeds through Insurance Agency will approach the concerned RA with the proof of payment issued by the concerned Insurance Agency. RA, after satisfying itself of the bona fide of the payment, will obtain approval of Additional DGFT (EDI) and then will upload the value (in lieu of e BRC value) in EDI system of DGFT for processing of the case. (b) If the proof of payment issued by the Insurance Agency mentions claim value both in foreign exchange and INR, RA will use the foreign exchange value for processing. If the claim value is mentioned only in equivalent INR, RA will convert this INR value in equivalent US$ using the exchange rate (published by CBEC) applicable on the date of settlement of insurance claim. 1.17 EDI Help Desk Online Complaint registration and monitoring system An EDI Help Desk is available to assist the exporters in filing online applications on the DGFT portal and resolving other EDI related issues. For assistance an email may be sent at [email protected] or Toll Free number 1800111550 can be used. Help Desk facility is also operational at the 4 Zonal Offices of DGFT, namely, CLA (New Delhi), Mumbai, Chennai Kolkata. An Online Complaint registration and monitoring system allows users to register complaint and receive status/ reply online (details at http://dgft.gov.in). 1.18 E-Mail Use of Email for queries relating to import/export is encouraged. Contact email ids are available at http://dgft.gov.in/exim/2000/ dgftContactUS. html. 1.19 eTrade Project The e TRADE project facilitates users to carry out all their foreign trade related compliances, regulatory or otherwise, online. Department of Commerce pilots this project. The major stake holders of the project are Customs, Directorate General of Foreign Trade (DGFT), Seaports, Airports, Container Corporation of India (CONCOR), Inland container Depots(ICDs)/ Container Freight Stations (CFSs), Banks, importers/exporters, agents, airlines/shipping lines. The project emphasizes automation of internal processes for quicker processing of trade requests. Transparency is induced in the system by reduced personal interface of importers/exporters with Government agencies. The project provides for following key services: (i) e-delivery of services / clearances by community partners like Customs and Custodians at Sea ports, Airports and ICD/CFSs. These services are extended to exporter, importer, agents etc. (ii) E-filing of export / import documents by exporter, importer, agents etc to Customs and Custodians at Sea Ports, Airports and ICD / CFSs. (iii) Electronic exchange of documents between community partners i.e. Customs and Custodians at Sea Ports, Airports, ICD/CFSs. (iv) e-Payment by exporter, importer, agents for Custom duties; DGFT s application and other fee and Charges (handling/freight, etc) of Custodians at Sea Ports, Airports, ICD/CFSs. --------------------- Notes:- 1. Substituted vide PUBLIC NOTICE NO 16/2015-2020 dt. 04th June, 2015 before it was read as, 1.07 Separate applications for exports from EDI and on EDI ports 2. Substituted vide PUBLIC NOTICE NO. 17/2015-2020 dated 04th June, 2015 , with effect from 1st April, 2015, before it was read as, 1.05 Procedure An exporter shall file his application online on DGFT website at http://dgft.gov.in/. Application will then be processed in accordance with prevalent rules and regulations. The processing of applications will be made online. DGFT shall issue deficiency letters, if any, in online mode or through use of e-mail. No communication shall be issued by DGFT in manual mode.